Case Studies

Tenet acquired three R&D and electrical component manufacturing facilities in the Northeastern U.S. Proceeds from our transaction were used to fund capital expenditures and reduce third-party borrowings – representing a lower cost replacement for debt and investor equity.

Tenet acquired one pharmaceutical manufacturing facility in the Southeastern U.S. from a publicly traded contract development and manufacturing organization in concert with a broader corporate recapitalization. Facing a pending debt maturity, Tenet addressed a capital gap that would have otherwise been filled with costly investor equity or restrictive debt. Our transaction materially improved capital and asset efficiency while enhancing corporate flexibility.

Tenet acquired four facilities in the Southeastern U.S. operated by an infrastructure service company for approximately $10 million.
A “catch & re-lease” is a transaction wherein Tenet acquires existing properties from a third party-landlord, and simultaneously leases those same properties back to the customer in a new, separate arrangement.
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Catch & re-lease strategies offer numerous potential benefits to the customer including (i) cash generation through the realization of a profit in the amount of the difference between the price struck with the third-party seller and Tenet’s ultimate purchase price, (ii) a rent reduction to improve operating cash flow, or (iii) replacing a traditional landlord with a more dynamic, long-term capital partner.

In this case – the Properties were acquired from multiple third parties and simultaneously leased back to the customer under a new contract. Facing near-term lease maturities, Tenet crafted a solution that allowed the customer to maintain operational control of these important sites while securing a source for add-on acquisitions and improvement funding at the Properties. The relationship with this customer continues to expand with their programmatic M&A-driven growth.

Tenet provided sale-leaseback capital to acquire 22 auto service centers in Texas in connection with the acquisition of business operations at the Properties by a leading auto service platform backed by a consumer-focused private equity firm with $10 billion AUM. Tenet’s proceeds resulted in the formation of a more efficient acquisition capital stack, improving return on investor equity, lowering the EBITDA multiple paid and elevating operational flexibility.

Tenet provided sale-leaseback capital to acquire 5 manufacturing facilities in the midwestern U.S. concurrent with the acquisition of associated business operations by a leading middle market private equity firm (the “Sponsor”) in a corporate carve-out transaction. Proceeds from our transaction were used to help capitalize the acquisition, reducing the Sponsor’s required equity investment and effectively lowering the multiple of EBITDA paid for the business